PSEi closes at record high for 2nd day in a row

Posted at 10/04/2012 5:34 PM | Updated as of 10/04/2012 5:43 PM

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) on Thursday reached a record-high for the 23rd time this year. 

The PSEi closed 1.27% up at 5,443.74, just a day after it hit new record of 5,375.52 on Wednesday.  

Gainers were led by SM Investments, which rose nearly 6%. Meralco gained 2.85%, while Ayala Corp. rose over 3.63%.

Shares of GMA-7 fell by 8.3% after talks for a buyout by the PLDT group were terminated. 

The Palace said the record-breaking performance of the stock market is proof of the growing confidence in the Philippines as an investment destination and a growing market. It noted Thursday's close was the 46th time the PSEi has broken its own record in 26 months. 

"This bullishness in our stock market is in marked contrast to the uncertainty in other markets. It serves as market validation of good governance as the enabler of more inclusive economic growth. It offers continued prospects of a full-scale turnaround of our country," the Palace said. 

Stock market to go up

Phillip Hagedorn, investment director at ATR-Kim Eng Asset Management, believes the market will still go up. 

"I think the market will go higher. I think it will be driven by inflows coming from the foreign investors and local investors that have interest rates at all time lows and seem to be headed much lower... There is no reason right now to be very concerned," he told ANC. 

IGC Securities president Ismael Cruz said the Asian Development Bank's move to raise the growth forecast for the Philippines boosted stocks. 

"Yesterday was a new high and today is again a new high. What triggered yesterday was the ADB's upgrade of our GDP forecast, they upgraded it to 5.5%. That comes with the backdrop of a call for lower interest rates, and no less than Deputy Governor Gunigundo saying the Philippines might get its investment grade next year and DBS followed with its forecast. So the scenario continues to improve for the Philippines," Cruz told ANC. 

Meanwhile, at the foreign exchange market, the peso closed at P41.470 against the US dollar.